SBI FD vs Post Office TD Scheme: Despite the plethora of investment options available today, a significant portion of the country's population still considers investing in Fixed Deposit (FD) schemes as a favorable choice. Many senior citizens, especially those retired, continue to prefer allocating their retirement funds into fixed deposit schemes.
If you are contemplating investing in the FD scheme offered by the State Bank of India (SBI) or the Post Office's term deposit scheme, we provide you with insights into the interest rates and benefits of both options.
SBI offers FD schemes ranging from 7 days to 10 years, providing interest rates between 3.00% and 6.50% for general customers. However, senior citizens enjoy higher interest rates, with SBI offering rates from 3.50% to 7.50%. Notably, SBI's special FD scheme, Amrit Kalash (444 days FD), provides an interest rate of 7.10% for the general public and 7.60% for senior citizen customers, but this scheme is valid until August 15, 2023.
On the other hand, the Post Office also offers FD schemes ranging from 1 to 5 years. For a 1-year term deposit, customers receive an interest rate of 6.9%. Additionally, the post office provides interest rates of 7% for a 2-year FD, 7% for a 3-year FD, and 7.5% for a 5-year FD.
It is important to note that both SBI and Post Office FDs with durations exceeding 5 years offer a tax rebate of up to Rs 1.50 lakh under Section 80C of the Income Tax Act.
Considering a 5-year investment period, the post office emerges as a more attractive option, as even common individuals can avail an interest rate of 7.50%.
Investors should carefully evaluate their investment goals, risk appetite, and available options before making a decision that aligns with their financial objectives. Consulting with a financial advisor can provide valuable insights and guidance in making the best investment choice.
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